Filipino carrier Globe Telecom will today list bonds worth a total of PHP10 billion (USD230.3 million) on the Philippine Dealing and Exchange Corp (PDEx), the firm said in a filing yesterday. The agreement signed with the bourse will allow Ayala-led Globe to trade PHP5.5 billion-worth of five-year bonds and PHP4.5 billion of seven-year bonds, it said. Proceeds from the bond issuance will be used in part to fund the telco’s ‘ongoing modernisation and information technology transformation programme, as well as to finance other capital expenditure requirements for the year.’
TeleGeography’s GlobalComms Database writes that in January this year Globe embarked upon a major network modernisation programme in preparation for the expected rise in voice and data traffic in the country. Globe president and CEO Ernest Cu was quoted at the time as saying that the launch of its massive network transformation got underway that month. In 2011 the group revealed plans to invest USD790 million this year on the modernisation, including USD700 million on the infrastructure itself and USD90 million in its IT transformation initiative. Once the works are completed, Cu expects to see a marked improvement in voice call quality, SMS delivery times and increases in transmission speeds, coverage and network reliability. The official confirmed that Globe plans to convert all of its cell sites to support Long Term Evolution (LTE) technology. As at end-September 2011 (latest official information), Globe had a total of 12,062 base stations and 6,580 cell sites to support its 2G, 3G and WiMAX services.